ING Real Estate has announced that it would invest approximately 25 million US dollars in a residential development project in Wuhan, capital of central China's Hubei Province.

ING Real Estate said its newly established China Opportunity Fund has signed a joint venture agreement with Gemdale Corporation, one of the largest property developers in China, for a majority stake in the project located at the Jiyu Bridge area of Wuchang District.

"It's our fund's strategy to participate in the fast growing real estate markets of second-tier cities in China by partnering with successful domestic developers," said Richard van den Berg, country manager for China at ING Real Estate Investment Management.

It will be the third joint venture between ING Real Estate and Gemdale, with the first two in Tianjin and Foshan, Guangdong province.

The new project involves a prime and well-established residential district along Yangtze River, occupying a land area of 64,900 square meters with total floor area of 194,700 square meters.

ING Real Estate, an arm of Dutch financial services firm ING Groep NV, has been operating in China since 1996. In December 2006, the closing of the China Opportunity Fund raised committed equity of 350 million U.S. dollars.

Apart from the joint venture project with Gemdale, the fund has joint venture projects with other leading domestic developers including Shanghai Forte Land, Raycom International and Longhu Real Estate Development.

Source: Xinhua